The Organisation of the Petroleum Exporting Countries and Russia have postponed a meeting set for Monday to discuss oil production cuts to April 9, 2020.
The meeting, which was earlier called by the Saudis after President Trump advised that huge oil production cuts could happen very soon, was meant to stabilize the oil market.
Saudi Arabia and Russia have engaged in an oil price war since the beginning of March when OPEC+ oil alliance fell apart, flooding the crude oil market with cheap oil just as demand plummeted because of the COVID-19 pandemic.
Crude oil has fallen to 18-year lows, creating holes in the pocket of oil companies and producing economies.
The virtual meeting would include oil-producing countries from outside the OPEC+ alliance. Mexico, United States, Canada, and the United Kingdom, who are non-members, could likely be invited for the meeting
President Trump recently met with US oil executives when he emphasized that he remained hopeful that the Saudis and Russians will reach a compromise to end the crude oil price war that began early March.
Both Saudi Arabia and Russia would like to include the Americans, the world’s leading oil producer, to join in emergency oil production cuts aimed at stopping oil prices from further fall.
The official Saudi Press Agency yesterday quoted Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud saying “is still welcoming to anyone who wants to find solutions to the challenges of the oil market.”
Oil gained from last week’s lows of $20 per barrel with Brent crude settling at $34.11 on Friday, though far below the $66 level at the end of 2019. Prices had their best one-day surge ever on Thursday when President Trump said he was optimistic the Russians and Saudis will announce a major oil production cut very soon